Here's why the GDP report obscures the fact the economic recovery still has further to go - Business Insider

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Here's why the record-shattering GDP report obscures the fact that the US economic recovery still has much further to go

But the economic recovery still has a long way to go, experts say."It's masking these pockets of real distress," former Federal Reserve economist Claudia Sahm said.The US economy expanded 7.4% during the third quarter of the year, the Commerce Department reported on Thursday. It's the largest growth rate ever recorded in a three-month period. At an annualized rate, it grew 33.1%.

But the big figure veils a critical reality: The nation's economy has not fully recovered from the pandemic — and it still has a long way to go. The latest surge doesn't make up for all the ground lost in the second quarter. of unrivaled economic contraction for the second quarter of the year, as businesses closed down and people stayed home to curb the spread of infections. The latest growth reflects the rebound that took place once the economy started reopening.

GDP is one gauge for recovery during a recession, experts say, though it may not reflect the economic wellbeing of average people.

 

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